Pay-for-performance plans have become popular as school districts search for ways to improve teacher quality and student academic achievement. There is a need to develop systems that are sensitive to the market and are performance based whereby higher performing teachers receive greater financial compensation and recognition. The sense of competition among districts also promotes a need to retain highly qualified teachers in the present climate of teacher shortages. Such programs have been developed with varying degrees of success in Florida (Star Plan), Denver (Pro-Comp), and Minnesota (Q-Comp). Development of the Career Lattice Program began with the realization that the public school district in Rockville Maryland needed a way to attract, develop, recognize, and retain high quality teachers throughout their professional careers. A 14-member Career Lattice Panel made up of an equal number of teachers and administrators was charged with the responsibility of developing the new program. The program makes an important distinction between the lattice program and the traditional career ladder system. The program is anticipated to benefit both students and teachers in the district. The development of skillful and collaborative teams of teachers will improve student learning and teachers will attain greater job satisfaction from the professional leadership and instructional skills acquired through their participation. It is also anticipated that individual schools will benefit from the increased leadership skills acquired by teachers and from the increased collaboration practiced by teaching staff.